Minimum Wage Legislation in Massachusetts

1. What is the current minimum wage in Massachusetts and how does it compare to federal minimum wage?

As of January 1, 2022, the current minimum wage in Massachusetts is $15.75 per hour. This is significantly higher than the federal minimum wage, which is currently set at $7.25 per hour.

2. Has there been any recent legislation proposed to increase the minimum wage in Massachusetts?


Yes, on January 13, 2021, Massachusetts Governor Charlie Baker filed a bill that would gradually increase the state’s minimum wage to $15 per hour by 2026. The current minimum wage in Massachusetts is $13.50 per hour and was scheduled to increase to $14.25 per hour in 2021 before the COVID-19 pandemic hit. The proposed legislation also includes a provision for future annual increases based on inflation. This bill is currently being reviewed by the legislature.

3. Are there any exemptions or exceptions to the minimum wage law in Massachusetts?


Yes, there are some exemptions and exceptions to the minimum wage law in Massachusetts. These include:

1. Tipped employees: Tipped employees are subject to a lower minimum wage rate of $4.95 per hour, as long as their tips bring their total hourly earnings up to at least the regular minimum wage rate of $12.75 per hour.

2. Student workers: Full-time students who work for no more than 20 hours per week may be paid 85% of the regular minimum wage rate (currently $10.88 per hour) for up to 90 days.

3. Workers at small businesses: Businesses with less than $302,000 in annual gross sales are exempt from paying the state minimum wage rate.

4. Seasonal and agricultural workers: Employers engaged in seasonal or specialized agricultural work may pay a special minimum wage that is set by the Commissioner of Labor and Workforce Development, as long as it is not less than 60% of the regular minimum wage rate.

5. Disabled workers: Certain individuals with disabilities may be employed at sub-minimum wages under special certificates issued by the state.

6. Independent contractors: Individuals who are considered independent contractors rather than employees are not covered by the state minimum wage law.

7. Some occupations: Certain occupations, such as those covered by federal laws like the Fair Labor Standards Act, have different minimum wage requirements and may be exempt from the state law.

It is important for both employers and employees to understand these exemptions and exceptions to ensure compliance with state law.

4. How often does the minimum wage in Massachusetts get reviewed and potentially adjusted?


The minimum wage in Massachusetts is reviewed and potentially adjusted every year by the state legislature and the governor. The annual review process typically takes place between January and June, with any changes being effective on January 1 of the following year.

5. Is there a difference in minimum wage for different industries or job types within Massachusetts?


Yes, the minimum wage in Massachusetts can vary based on industry and job type. For example, the minimum wage for tipped employees is lower than that of non-tipped employees, with the expectation that tips will make up the difference. Additionally, certain industries such as agriculture or fishing have different minimum wage rates set by law. Some cities within Massachusetts may also have their own minimum wage rates. It is important to check with your employer or the Department of Labor Standards to know the applicable minimum wage for your specific job and location.

6. Have there been any significant changes to the minimum wage laws in Massachusetts over the past decade?


Yes, there have been significant changes to the minimum wage laws in Massachusetts over the past decade. In 2009, the minimum wage in Massachusetts was $8 per hour. Since then, there have been several increases to the minimum wage:

1. In 2014, the minimum wage was increased to $9 per hour.
2. In 2015, it was increased again to $9.75 per hour.
3. In 2016, it was increased to $10 per hour.
4. In 2017, it was increased to $11 per hour.
5. In 2018, a law was passed that gradually increases the minimum wage to $15 per hour by 2023.
6. In January 2020, the minimum wage reached $12.75 per hour and will continue to increase each year until it reaches $15 per hour in 2023 for non-tipped employees.

There have also been changes in the minimum wage for tipped employees:

1. In 2009, the minimum base wage for tipped employees was $2.63 per hour.
2. This rate has gradually increased every year since then and reached $4.95 in January 2020.
3. By January 2023, tipped employees will be entitled to a base wage of at least two-thirds of the regular minimum wage (which will be $10 by then), plus tips.

Overall, these changes reflect an effort from legislators to gradually increase wages in order to keep up with inflation and provide a livable income for workers in Massachusetts.

7. How does Massachusetts’s minimum wage compare to neighboring states?

Massachusetts’s minimum wage is currently the highest among all of its neighboring states. As of January 2022, Massachusetts has a minimum wage of $15 per hour, while Connecticut’s minimum wage is $13.50 per hour, Rhode Island’s is $12.75 per hour, and New Hampshire’s and New York’s are both at $12.50 per hour. Vermont’s minimum wage will increase to $12.75 per hour in January 2023.

Additionally, Maine’s minimum wage is currently at $12.15 per hour and will reach $15 per hour by 2024. Overall, Massachusetts has a higher minimum wage than all of its neighboring states except for Maine (in the future).

8. Is it legal for employers in Massachusetts to pay less than minimum wage, such as through tip credits or youth wages?


No, it is not legal for employers in Massachusetts to pay less than the minimum wage. The state’s minimum wage laws apply to all workers, regardless of their age or the type of work they do. Both tip credits and youth wages are not allowed under Massachusetts law. Tip credits, which allow employers to pay tipped employees less than the minimum wage with the expectation that tips will make up the difference, are not permitted in Massachusetts. Youth wages, which allow employers to pay workers under the age of 20 a lower minimum wage for a certain period of time, are also not allowed in the state. Employers who violate these laws may face penalties and fines.

9. Are small businesses exempt from paying the state minimum wage in Massachusetts?

No, small businesses in Massachusetts are not exempt from paying the state minimum wage. All employers, regardless of size, are required to pay their employees at least the state minimum wage.

10. What is considered a livable or fair wage according to cost of living in Massachusetts?


The “livable wage” or “fair wage” in Massachusetts refers to the minimum amount of income needed for an individual or family to cover basic necessities such as housing, food, healthcare, and transportation. According to the MIT Living Wage Calculator, the livable wage for a single adult working full-time in Massachusetts is $15.40 per hour. For a family with two parents and two children with both parents working full-time, the fair wage would be $32.51 per hour for each parent. This takes into account the cost of living in Massachusetts, which includes higher housing costs and overall expenses compared to many other states in the US.

11. Does Massachusetts have a plan for gradually increasing the minimum wage towards a certain target amount?

Yes, Massachusetts has a plan to gradually increase the minimum wage towards $15 per hour by 2023. The state’s current minimum wage is $13.50 per hour and will continue to increase in annual increments until it reaches $15.00 in 2023.

The following table outlines the planned increases:

Date | Minimum Wage
—|—
January 1, 2019| $12.00
January 1, 2020 | $12.75
January 1, 2021 | $13.50
January 1, 2022 | $14.25
January 1, 2023 | $15.00

After reaching $15 per hour in 2023, the minimum wage will be adjusted each year based on changes in the cost of living.

Employers are required to pay employees the higher state minimum wage rate or the federal minimum wage rate, whichever is higher. In Massachusetts, tipped workers are also entitled to a minimum cash wage of at least $5 per hour before tips and their total earnings (including tips) must equal at least the state minimum wage.

Local governments in Massachusetts may also establish a higher minimum wage for their jurisdiction as long as it is above the state minimum wage.

12. Are there any debates or controversies surrounding the current minimum wage laws in Massachusetts?


Yes, there are several debates and controversies surrounding the current minimum wage laws in Massachusetts. Some of the main ones include:

1. The sufficiency of the minimum wage: One debate revolves around whether the current minimum wage in Massachusetts is enough for workers to cover their basic living expenses. While some argue that it is sufficient, others argue that it falls short and that a higher minimum wage is needed to ensure that workers are able to make ends meet.

2. Impact on small businesses: Another debate centers around the impact of raising the minimum wage on small businesses. While supporters of a higher minimum wage argue that it will help workers and stimulate the economy, opponents argue that it could lead to job losses and hurt small businesses’ ability to operate.

3. Cost of living adjustments: There is also a debate about whether or not the minimum wage should be adjusted for cost of living changes. Currently, Massachusetts has a yearly cost-of-living adjustment built into its minimum wage law, but some argue that this adjustment is not enough to keep up with rising expenses.

4. Regional differences: Some critics argue that having one uniform statewide minimum wage does not take into account regional differences in costs of living within Massachusetts. They suggest implementing a tiered system where cities and towns with higher costs of living would have a higher minimum wage than areas with lower costs.

5. Youth and training wages: There are also debates surrounding the youth and training wages allowed under Massachusetts’ current law. These lower wages can be paid to workers under 20 for their first 90 days on the job or to certain employees undergoing training. Critics argue that these wages exploit young and inexperienced workers, while supporters say it encourages employers to give young or untrained individuals opportunities they might not have otherwise had.

6. Tipped employees: Lastly, there is ongoing controversy over the different minimum wages for tipped employees (who currently have a $4 per hour lower base rate) compared to non-tipped employees. Some argue that tipped workers should be paid the same as other employees, while others believe that the current system allows for more flexibility and rewards good service.

13. Do employees who receive tips have a separate, lower minimum wage requirement in Massachusetts?


Yes, employees who receive tips have a separate minimum wage requirement in Massachusetts. As of January 1, 2021, the minimum cash wage for tipped employees is $5.55 per hour. However, if an employee’s tips combined with their wages do not equal the regular minimum wage ($13.50), the employer must make up the difference. This is known as the “tip credit” rate and it is currently set at $7.95 per hour.

14. Are non-profit organizations exempt from paying their employees at least state minimum wage in Massachusetts?


Yes, non-profit organizations in Massachusetts are subject to state minimum wage laws and must pay their employees at least the state minimum wage. They may also be subject to federal minimum wage laws if they engage in interstate commerce or meet other conditions set by the Fair Labor Standards Act (FLSA).

15. What are the consequences for employers who violate the state’s minimum wage laws in Massachusetts?


Employers who violate Massachusetts’ minimum wage laws may face severe consequences, which may include monetary penalties, back wages owed to employees, and potential criminal prosecution. The exact consequences will depend on the specific violations committed by the employer.

For example, if an employer fails to pay an employee the minimum wage, they may be required to pay back any unpaid wages plus interest and could face a fine of up to $500 for each violation. In cases where an employer intentionally violates minimum wage laws or has a history of similar violations, the penalties can be more severe.

Additionally, employers who retaliate against employees for asserting their right to be paid the minimum wage may face fines of up to $25,000 and potential legal action from the affected employee.

It is important for employers in Massachusetts to be aware of and comply with all state minimum wage laws to avoid these consequences.

16. How does overtime pay affect employees who are paid at or near the state’s minimum wage level in Massachusetts?

Overtime pay affects employees who are paid at or near the state’s minimum wage level in Massachusetts by entitling them to receive 1.5 times their regular hourly rate for all hours worked over 40 in a workweek. This means that these employees will earn more money for working extra hours, which can help them make ends meet and potentially lift them out of poverty. However, it is important for employers to also ensure that these employees are not being overworked and that they are taking adequate breaks and time off, as overtime can lead to burnout and negatively impact their physical and mental well-being. Additionally, some employers may choose to limit or reduce the overtime hours offered to these employees in order to keep labor costs down, which could result in a reduction in overall earnings for these workers.

17. Are there any specific industries or job types that are exempt from following state-level minimum wage laws in Massachusetts?

There are a few specific industries and job types that are exempt from following state-level minimum wage laws in Massachusetts. These include:

1. Tipped employees: Employees who regularly receive more than $20 per month in tips may be paid a lower minimum wage of $4.35 per hour, as long as their tips combined with their hourly wage add up to at least the full minimum wage rate.

2. Agricultural workers: Agricultural workers who are not employed on a farm that is primarily for agriculture may be paid 75% of the state minimum wage.

3. Fishermen: Fishermen are exempt from state minimum wage laws if they are members of a group known as “crew members” and are compensated through a share of the boat’s profits.

4. Babysitters and companions for elderly or disabled individuals: Certain workers who provide care for people in their own homes, including babysitters and companions for elderly or disabled individuals, may be exempt from state minimum wage laws.

5. Independent contractors: Individuals who work as independent contractors rather than traditional employees are not subject to state minimum wage laws.

6. Government employees: Certain government employees may be exempt from state minimum wage laws, especially those working under federal contracts or grants.

7. Employees covered by collective bargaining agreements: In some cases, unionized workers covered by collective bargaining agreements may have different minimum wage requirements than those set by state law.

It’s important to note that these exemptions only apply to state-level minimum wage laws. Employers must still comply with any higher federal or local minimum wage requirements that may apply.

18. If an employee works remotely for a company based outside of Massachusetts, do they still receive at least state-mandated minimum wage?

It depends on where the employee is physically located while performing the work. If they are working in a state with a lower minimum wage than Massachusetts, they would receive at least the state minimum wage for the location of their work. If they are working in a state with a higher minimum wage than Massachusetts, they would receive at least the higher state minimum wage. It is important for employers to comply with all applicable minimum wage laws for their employees, regardless of their location.

19. Are there any age restrictions for employees earning the minimum wage in Massachusetts?


Yes, there are age restrictions for employees earning the minimum wage in Massachusetts. According to state law, the minimum wage applies to employees who are 18 years or older. However, in some limited circumstances, employees under the age of 18 may be paid a lower training wage for the first 90 days of employment. Additionally, minors aged 14 and 15 can be paid a reduced rate as long as they work no more than 16 hours per week during school weeks and no more than eight hours per day when school is not in session.

20. In what ways does Massachusetts enforce compliance with their minimum wage laws?

Massachusetts enforces compliance with their minimum wage laws through a variety of measures, including:

1. Monitoring and investigation: The Massachusetts Office of the Attorney General (AGO) conducts regular investigations and audits of employers to ensure compliance with minimum wage laws.

2. Public awareness campaigns: The AGO also conducts educational outreach to raise awareness about minimum wage laws and workers’ rights.

3. Complaint-based enforcement: Employees can file complaints with the AGO if they believe that their employer is not paying them the minimum wage.

4. Penalties and fines: Employers who are found to be in violation of minimum wage laws may face penalties, fines, or legal action from the AGO.

5. Civil lawsuits: Workers can bring civil lawsuits against their employers for unpaid wages or other violations of minimum wage laws.

6. Formal agreements: The AGO may work with employers to enter into formal assurance agreements to ensure compliance with minimum wage laws.

7. Employer education and assistance: The AGO also offers resources and guidance to help employers understand and comply with minimum wage laws.

8. Collaboration with other agencies: The AGO partners with other state agencies, such as the Department of Labor Standards, to enforce minimum wage laws and protect workers’ rights.

9. Mandatory posting requirements: Employers in Massachusetts are required to display posters that inform employees about their rights under state’s labor laws, including the minimum wage law.

10. Stiffer penalties for repeat offenders: Employers who have a history of violating minimum wage laws may face steeper penalties and consequences for non-compliance.